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Nuloch Resources completes $28 million financing

Published: 22:30 14 Oct 2010 BST

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NuLoch Resources (TSX-V:NLR.A, NLR.B) (OTCQX: NULCF), a junior oil and gas exploration and development company based in Calgary, Alberta, announced that it has completed its previously announced $28 million bought deal financing. 


The offering was underwritten by a syndicate led by Canaccord Genuity, and including Raymond James, Wellington West Capital Markets, and Clarus Securities. 


The offering includes 16 million NuLoch Class A shares at a price of $1.25 per share and 5.4 million Class A shares on a flow-through basis at a price of $1.50 per share.  The underwriters are granted an option to buy 2.5 million shares at $1.25 per share for market stabilization and over-allotment purposes.  


As a part of their compensation, the underwriters have also received options to subscribe for 642,000 NuLoch Class A shares at $1.25 per share on or before July 14, 2011. 


Should the underwriters exercise the over-allotment option, they will receive additional compensation options allowing them to buy shares equal to 3% of the number of shares issued under the over-allotment option at an exercise price equal to $1.25.  The options are valid for nine months from the date of closing of the over-allotment option.


After the financing, NuLoch now has 117.5 million Class A shares and 0.65 million Class B shares issued and outstanding.


NuLoch will use the proceeds from the offering to fund its exploration and development activities with a focus on development of its properties at Tableland, Saskatchewan and Divide and Burke counties in North Dakota as well as for working capital.


As of December 31, 2009, the company had proved and probable reserves of about 3.5 million barrels of oil equivalent.

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